Proposed increase maintains water service cost at about one cent per gallon
Virginia American Water Company (Virginia American Water) today filed a general rate case application with the State Corporation Commission (SCC) requesting an increase in total revenues of approximately $5.7 million. The rate application seeks recovery of additional system investments of approximately $12.8 million since approval of the company's last rate case, filed in March 2010, along with recovery of increased operating expenses.
The rate request affects customers in the company's Alexandria, Hopewell, and Prince William service areas, as well as the recently added Eastern service area comprised of the former United Water Virginia, Inc. service territory. As proposed, rates for Virginia American Water's residential customers would change as follows:
- Alexandria – From $47.73 to $53.53 per quarter for the typical residential customer using 14,400 gallons per quarter.
- Hopewell - From $36.66 to $43.32 per month for the typical residential customer using 6,000 gallons per month.
- Prince William - From $80.01 to $99.87 per quarter for the typical residential customer using 17,300 gallons per quarter.
- Eastern - From $108.44 to $145.11 bi-monthly for the typical residential customer using 8,000 gallons bi-monthly.
Although the amounts, shown above, do not include taxes, surcharges or third-party billings, the proposed cost of water service in all four Virginia American Water districts would remain at about one penny per gallon.
"Virginia American Water is committed to meeting our customers' needs by providing quality, reliable water service at a reasonable cost," said William Walsh, president of Virginia American Water. "Continued investment in water infrastructure to upgrade aging systems and to meet more stringent regulations is necessary to provide reliable water service to our customers."
When the proposed rates are put into effect, customers will receive information explaining these rates.The proposed rates are subject to refund based on the SCC's final decision on the amount of the actual increase, which will follow an extensive review of Virginia American Water's rate application. For more information, customers can contact Virginia American Water's customer service center at 1-800-452-6863.
"The regulatory process considers both the needs of the customer and the company's ability to continue to reinvest in the infrastructure to deliver high-quality water service," said Walsh. "Our company consistently meets or surpasses all water quality standards established by both the U.S. Environmental Protection Agency and the Virginia Department of Health. We believe it is more cost-effective in the long run to proactively invest to make needed system improvements, rather than put customers at risk of serious service and water quality issues."
Virginia American Water, a wholly owned subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to more than 300,000 people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in more than 30 states, as well as parts of Canada. More information can be found by visiting www.amwater.com.
Contacts:
Virginia American Water Company
Mary-Jane Atwater
M:
202-316-1198
mj@atwatercommunications.com
